Teller Finance, a blockchain project for decentralized lending, announced its upcoming integration with Chainlink, the market-leading oracle provider, ahead of their public alpha launch. Chainlink will initially provide Teller with three cryptocurrency price feeds via its Price Reference Data oracle networks, these feeds will include DAI/ETH, USDC/ETH, and LINK/USD.
Read More: Vitesse, a Fintech Providing Real-Time Cross-Border Payments for Businesses, Scores £6.6m Series A
“For the consumer, this means an affordable user experience that leverages positive credit history to lower DeFi’s exorbitant collateral ratios.”
Teller uses an open-source protocol that interacts with consumer data to calculate default risk and offer unsecured crypto-asset loans. Users can supply liquidity to the protocol’s lending pools and earn interest from repaid loans. Teller leverages borrowers’ credit history to calculate an annual interest rate (APR) that is based on market conditions vs. consumer credit risk, reducing or eliminating the need for collateral.
“Teller calculates consumer credit risk as a measure of personal financial data, e.g. debt to income ratio. The latter translates into an APR that is not only based on money market interest rate, but also takes into account consumer credit risk. Variable loan APRs in turn result in variable APY for liquidity providers,” explained Ivan Perez, Founder & COO at Teller Finance. “For the consumer, this means an affordable user experience that leverages positive credit history to lower DeFi’s exorbitant collateral ratios.”
Integration of Chainlink’s Price Reference Data feeds will allow Teller to capture real-time price information on the protocol’s assets under management, ensuring that all APR calculations for unsecured loans reflect real market conditions.
Read More: GlobalFintechSeries Interview with Anand Kumar Bajaj, MD & CEO at PayNearby
